Investor Presentation • Aug 2, 2007
Investor Presentation
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Conference Call, 2nd Quarter / 1st Half 2007 Results, August 2, 2007
© Fresenius Medical Care AG & Co. KGaA
This presentation includes certain forward-looking statements. Actual results could differ materially from those included in the forwardlooking statements due to various risk factors and uncertainties, including changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing. These and other risks and uncertainties are detailed in the Company's reports filed with the Securities and Exchange Commission and the German Exchange Commission "Deutsche Börse".
1.) I. Business Update
II. Financials Q2 and Outlook 2007
III. Q&A Session
3
* including clinics where FME has in interest of at least 10% the amount of patients treated would be 10,994 patients in 144 clinics
| R e e n e v u |
\$ 2 4 0 4 m , |
% 1 1 + |
|---|---|---|
| N i t e n c o m e ( ) lu d in t im i te in 2 0 0 6 ex c g on e- e m s |
\$ 1 9 7 m |
3 0 % + |
| E i h a r n n g s p e r s a r e ( lu d in t im i te in 2 0 0 6 ) ex c g on e- e m s |
\$ 0 6 0 |
3 0 % + |
¾Continued strong development across all segments and regions
¾Continued momentum based on strong organic revenue growth of 8%
* 9% growth at constant currency (cc)
| \$ i i l l i n m o n s |
Q 2 2 0 0 6 |
Q 2 2 0 0 7 |
G t h r o w |
|---|---|---|---|
| N h A i t o r m e r c a |
1 4 2 8 , |
1 4 9 9 , |
6 % Ad jus ted fo r P erf ion us Bu sin ess |
| I t t i l n e r n a o n a |
2 2 4 |
2 9 6 |
3 2 % ( 2 4 % ) c c |
| T l t o a |
1 6 2 5 , |
1 9 6 7 , |
9 % ( 8 % ) c c |
cc = constant currency
7
| O i h f % i D i l i S i t 7 r g a n c r e v e n u e g r o w o n a y s s e r v c e s |
|||||
|---|---|---|---|---|---|
| T t l o a |
N t h A i o r m e r c a |
I t t i l n e r n a o n a |
|||
| % 7 + c c |
6 % + |
1 3 % + c c |
|||
| 1 % 4 + |
2 8 % + |
3 % 7 + |
|||
| 1) \$ 3 2 3 |
\$ 1 4 9 |
||||
| 3 % + |
6 % + c c |
||||
| 6 6 |
4 6 |
2 0 |
|||
| % 7 + |
% 3 + |
% 1 7 + |
|||
1) including Mexico cc=constant currency
| N t h A i o r m e r c a ( % f a l l F M E ien ) t ts o p a |
E M i d d l E A f i t, u r o p e e a s r c a , ( % f a l l F M E t ien ts ) o p a |
|||||
|---|---|---|---|---|---|---|
| Q 2 2 0 0 6 |
Q 2 2 0 0 7 |
Q 2 2 0 0 |
Q 6 2 2 0 0 7 |
|||
| K / V 1 2 t ≥ |
9 4 % |
9 4 % |
K / V 1 t ≥ |
2 | 9 3 |
% 9 3 % |
| H l b i 1 1 / d l ≥ e m o g o n g |
8 1 % |
8 1 % |
H l e m o g o |
b i 1 1 ≥ n g |
/ d l 6 6 |
% 2 % 7 |
| A l b i 3 / d l 5 ≥ u m n g |
8 0 % |
9 % 7 |
A l b i u m n |
3 / 5 d l ≥ g |
8 8 |
% 8 6 % |
| H i l i i d t t o s p a z a o n a y s |
1 1 5 |
1 1 2 |
H i t l i o s p a |
t i d z a o n a y |
8 s |
3 8 1 |
| N h A i ( l l P i ) t t t o r m e r c a a a e n s |
2 0 0 3 |
2 0 0 4 |
2 0 0 5 |
2 0 0 6 |
Q 1 2 0 0 7 |
Q 2 2 0 0 7 |
| H i l i i D t t o s p a z a o n a y s |
1 3. 4 |
1 3. 2 |
1 1. 9 |
1 1. 7 |
1 1. 4 |
1 1. 2 |
10
Data Source: Clinical Performance Management (CPM) Data / Legacy FMC U.S. clinics
11
| \$ i i l l i n m o n s |
Q 2 2 0 0 6 |
Q 2 2 0 0 7 |
G t h r o w |
|---|---|---|---|
| T l t o a r e e n e v u |
6 7 9 |
7 9 9 |
1 8 % |
| ( i l. I t l ) n c n e r n a r e v e n u e |
( 1 3 % ) c c |
| E l t x e r n a r e v e n u e |
5 1 4 |
6 0 8 |
% 1 8 |
|---|---|---|---|
| ( % ) 1 3 c c |
|||
| N h A i t o r m e r c a |
1 3 3 |
1 6 1 |
2 1 % |
| I i l t t n e r n a o n a |
3 8 1 |
4 4 7 |
% 1 7 |
| ( % ) 1 0 c c |
cc = constant currency
| C A G R 0<br>0<br>06 - |
C A G R 0<br>6<br>12 - |
|
|---|---|---|
| E M i d d l E A f i t, u r o p e, e a s r c a |
6. 6 % |
5. 9 % |
Data Source: Company Estimates
| M i d 2 0 0 7 |
T 2 0 1 0 t a r g e |
|---|---|
| \$ 7 0 0 i l l i m o n ~ |
\$ 1 1 0 0 i l l i m o n ~ , |
| 3 5 3 t c e n e r s |
5 0 0 t > c e n e r s |
| 2 6 0 0 0 t i t p a e n s ~ , |
4 0 0 0 0 t i t > p a e n s , |
| 1 i 7 t c o n r e s u |
2 i 5 t c o n r e s u ~ |
¾ We expect some European countries to fundamentally change their Dialysis Reimbursement System towards a Bundled Rate and combine it with advanced quality control systems (e.g. combination of quality indicators and quality objectives)
¾Revenue will exceed \$500 million in 2007
¾Organic revenue growth of 12%cc for H1 2007
¾First time achieving more than 300,000 treatments a quarter
¾Successful integration of recent acquisitions in Taiwan and Korea
¾Japanese production sites performing well
¾Acquisition of production plant in China
-Platform for further expansion for Mainland China
Note: Myanmar, Brunei, East Timor, Papua New G, Nepal, Bangladesh, Sri Lanka, Maldives, Bhutan, Cambodia are excluded from the projection starting year 2007 (representing less than 0.5% of total Asia Pacific in 2006)
Source: Fresenius Medical Care
| \$ i i l l i n m o n s |
2) Q 2 2 0 0 6 |
Q 2 2 0 0 7 |
% |
|---|---|---|---|
| N t e r e v e n u e |
2 1 6 5 , |
2 4 0 4 , |
* 1 1 + |
| 1) O i i ( E B I T ) t p e r a n g n c o m e |
3 3 7 |
3 9 1 |
1 6 + |
| E B I T i i % m a r g n n |
1 5 5 |
1 6 3 |
|
| I t t t n e r e s e x p e n s e n e , |
1 0 0 |
9 2 |
|
| 1) I b f i t n c o m e e o r e n c o m e a x |
2 3 7 |
2 9 9 |
2 6 + |
| T 1) a x e x p e n s e |
9 5 |
1 1 3 |
|
| T t a r a e x |
4 0 % |
3 8 % |
|
| M i i i t t t n o r y n e r e s |
5 | 7 | |
| 1) N i t e n c o m e |
1 3 7 |
1 7 9 |
3 0 + |
* 9% growth at constant currency, 8% organic growth
A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment. 1)
Excluding one-time items 2)
* Excluding one-time items
23
* Excluding one-time items. A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment.
24
© Fresenius Medical Care AG & Co. KGaA
| \$ i i l l i n m o n s |
Q 2 2 0 0 6 |
Q 2 2 0 0 7 |
% |
|---|---|---|---|
| N h i d d b i i i i t t t t e c a s p r o e o p e r a n g a c e s v y v C G E l. R i i t i c a c q s o n x u |
1) 2 4 0 |
2 2 5 % f r 9. 4 o ev en ue |
( ) 6 |
| 2) C i t l d i t ( t ) a p a e x p e n u r e s n e |
( 9 ) 5 |
( ) 1 3 2 |
|
| C F h F l r e e a s o w |
1 4 5 |
9 3 |
( 3 6 ) |
| A i i i t ( l d i R C G i 2 0 0 6 ) c q s o n s u e x c u n g n |
( 2 4 ) |
( 2 4 ) |
|
| F C h F l ( f i i i l. R C G i 2 0 0 6 ) r e e a s o t t w a e r a c q u s o n s e x c n |
1 2 1 |
6 9 |
Excl. net tax payments of \$ 75 m and \$ 14 m payment related to the RCG acquisition 1)
A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment. 2)
| \$ i i l l i n m o n s |
1 2 0 0 6 H |
1 2 0 0 H 7 |
% |
|---|---|---|---|
| N h i d d b i i i i t t t t e c a s p r o e o p e r a n g a c e s v y v C G E l. R i i t i c a c q s o n x u |
1) 4 0 2 |
0 8 5 % f r 1 0. 7 o ev en ue |
2 6 |
| 2) C i t l d i t ( t ) a p a e x p e n u r e s n e |
( 1 6 0 ) |
( ) 2 4 0 |
|
| C F h F l r e e a s o w |
2 2 4 |
2 6 8 |
1 1 |
| A i i i t ( l d i R C G i 2 0 0 6 ) c q s o n s u e x c u n g n |
( 3 5 ) |
( 1 1 4 ) |
|
| F C h F l ( f i i i l. R C G i 2 0 0 6 ) r e e a s o t t w a e r a c q u s o n s e x c n |
2 0 7 |
1 5 4 |
Excl. net tax payments of \$ 75 m and \$ 14 m payment related to the RCG acquisition 1)
A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment. 2)
pf = pro forma ltm = last twelve months cl = closing RCG
including non-cash charges and excluding restructuring costs, in-process R&D and gain from the sale of dialysis clinics 1)
* Adjusted for special charge and related expenses
| O l d G i d u a n c e |
N E W G i d u a n c e |
|
|---|---|---|
| N t e r e v e n u e |
\$ 9 4 b n ~ |
\$ 9 5 b > n |
| N t i e n c o m e |
\$ 6 7 5 6 9 5 m - |
\$ 6 8 5 7 0 5 m - |
| L i t ( D b / E B I T D A ) t e v e r a g e r a o e |
3 0 < |
3 0 < |
| C E d i i t i a p a n a c q s o n s x u |
\$ 6 0 5 m ~ |
\$ 6 5 0 m ~ |
Conference Call, 2nd Quarter / 1st Half 2007 Results, August 2, 2007
© Fresenius Medical Care AG & Co. KGaA
| D b t e |
Q 2 2 0 0 7 |
F Y 2 0 0 6 |
F Y 2 0 0 5 |
F Y 2 0 0 4 |
F Y 2 0 0 3 |
|---|---|---|---|---|---|
| 1) S ho bo ing ( inc l. A / R ) t te r rm rro s p ro g ra m w |
4 6 7 |
3 3 1 |
1 5 1 |
4 1 9 |
9 0 |
| S fro ho t te bo ing la te d t ies + r rm rro w s m re p ar |
2 9 |
5 | 1 9 |
6 | 3 0 |
| Cu ion f lon de b d c i l lea b l ig ion t p t te t a ta t + rre n or o g- rm n ap se o a s |
1 3 5 |
1 6 0 |
1 2 6 |
2 3 0 |
9 0 |
| Cu t p t ion f Tr t Pr fe d Se i t ies + rre n or o us e rre cu r |
6 4 5 |
||||
| Lo de b d c i l lea b l ig ion les ion -te t a ta t t p t + ng rm n ap se o a s, s c ur re n or |
3, 7 4 1 |
3, 8 2 9 |
7 0 7 |
5 4 5 |
1, 1 1 2 |
| fe Se ( f c ) Tr t Pr d i t ies t o t p t ion + us e rre cu r ne ur re n or |
6 2 7 |
1, 2 5 4 |
1, 1 8 8 |
1, 2 7 9 |
1, 2 4 2 |
| Ac ts iva b le i t iza t ion + co un re ce se cu r p ro g ra m |
0 | 0 | 0 | 0 | 1 5 8 |
| To ta l de b t = |
5, 6 6 2 |
5, 5 7 9 |
2, 1 9 1 |
2, 4 7 9 |
2, 7 2 2 |
| E B I T D A |
2) Q 2 2 0 0 7 |
2) F Y 2 0 0 6 ( fo ) p ro rm a |
F Y 2 0 0 5 |
F Y 2 0 0 4 |
F Y 2 0 0 3 |
|---|---|---|---|---|---|
| La t tw lve t hs t ing inc ( E B I T ) s e m on o p er a om e |
1, 4 9 0 |
1, 3 6 7 |
9 3 9 |
8 5 2 |
7 5 7 |
| La t tw lve t hs de ia t ion d a t iza t ion + s e m on p re c a n mo r |
3 3 8 |
3 2 6 |
2 5 1 |
2 3 3 |
2 1 6 |
| No h c ha + n- ca s rg es |
3 9 |
3 5 |
1 4 |
1 3 |
1 3 |
| E B I T D A ( l ize d ) = an nu a |
1, 8 6 7 |
1, 7 2 8 |
1, 2 0 4 |
1, 0 9 8 |
9 8 6 |
A/R securitization program off-balance sheet in 2003 and included in short term borrowings in 2004 1)
Excluding gain from divestitures, restructuring costs and in-process R&D 2)
All numbers are in \$ millions
Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measure
| E l R t x e r n a e v e n u e |
Q 2 2 0 0 7 |
Q 2 2 0 0 6 |
t h g ro w |
cc |
|---|---|---|---|---|
| In io l du te t t r rn a na p ro c ev en ue |
0 8 5 |
4 3 2 |
1 8 % + |
1 0 % + |
| In te l re rn a ve nu e - |
( 6 1 ) |
( 5 1 ) |
||
| Ex te l r = rn a ev en ue |
4 4 7 |
3 8 1 |
% 2 0 + |
% 1 2 + |
| No h Am ica du t t r r er p ro c ev en ue |
2 9 |
1 2 4 7 |
1 8 % + |
|
| In te l re rn a ve nu e - |
( 1 3 0 ) |
( 1 1 4 ) |
||
| Ex te l r = rn a ev en ue |
1 6 |
1 1 3 3 |
% 2 1 + |
|
| T O T A L du t r p ro c ev en ue |
7 9 |
9 6 7 9 |
9 % + |
8 % + |
| In te l re rn a ve nu e - |
( 1 9 1 ) |
( 1 6 5 ) |
||
| Ex te l r = rn a ev en ue |
6 0 |
8 5 1 4 |
% 1 8 + |
% 1 3 + |
| C i t l d i t ( t ) a p a e x p e n u r e n e |
H 1 2 0 0 7 |
Q 2 2 0 0 7 |
Q 2 2 0 0 6 |
H 1 2 0 0 6 |
| Pu ha f p lan d e ip ty, t a t rc se o ro p er p n q u me n |
2 5 2 |
1 3 5 |
1 0 3 |
1 7 3 |
| Pr ds fro le f p ty, lan t a d e ip t oc ee m sa o ro p er p n q u me n - |
( 1 2 ) |
( 3 ) |
( 8 ) |
( 1 3 8 ) |
| Ca ( ) i ta l e d i tu t = p xp en re ne |
2 4 0 |
1 3 2 |
9 5 |
1 6 0 |
35
Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measure
| A l |
l n um |
be rs |
a re |
in | \$ | i l m |
l io ns |
|
|---|---|---|---|---|---|---|---|---|
| -- | -------- | ----------- | ---------- | --------- | ---- | ---- | ------------- | --------------- |
| E B I T i m a r g n s |
Q 1 2 0 0 5 |
Q 2 2 0 0 5 |
Q 3 2 0 0 5 |
Q 4 2 0 0 5 |
F Y 2 0 0 5 |
|---|---|---|---|---|---|
| Re ve nu e |
1, 6 0 9 |
1, 6 7 4 |
1, 7 1 7 |
1, 7 7 2 |
6, 7 7 2 |
| E B I T |
2 2 0 |
2 3 8 |
2 3 7 |
2 4 4 |
9 3 9 |
| E B I T ins m ar g |
1 3. % 7 |
1 4. 2 % |
1 3. 8 % |
1 3. 8 % |
1 3. 9 % |
| On t im f fe ts e- e e c |
1. 2 |
6. 8 |
1 4. 4 |
2 2. 4 |
|
| E B I T ins l. o -t im f fec ts m ar g ex c ne e e |
% 1 3. 7 |
% 1 4. 3 |
% 1 4. 2 |
% 1 4. 6 |
% 1 4. 2 |
| E B I T i m a r g n s |
Q 1 2 0 0 6 |
Q 2 2 0 0 6 |
Q 3 2 0 0 6 |
Q 4 2 0 0 6 |
F Y 2 0 0 6 |
| Re ve nu e |
1, 7 4 7 |
2, 1 6 5 |
2, 2 3 4 |
2, 3 5 2 |
8, 4 9 9 |
| E B I T |
2 4 4 |
3 2 7 |
3 4 9 |
3 4 5 |
1, 3 1 8 |
| E B I T ins m ar g |
1 4. 0 % |
1 7. 2 % |
1 5. 6 % |
1 5. 0 % |
1 5. 5 % |
| On t im f fe ts e- e e c |
0. 4 |
( 3 5. 2 ) |
6 | 2 5. 5 |
1 0. 9 |
| E B I T ins l. o -t im f fec ts m ar g ex c ne e e |
1 4. 0 % |
1 % 5. 5 |
1 9 % 5. |
1 6. 1 % |
1 6 % 5. |
Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measure
| \$ A l l n be in i l l io um rs a re m ns |
||||
|---|---|---|---|---|
| O i f b f i i t t t p e r a n g p e r o r m a n c e e o r e o n e- m e e m s |
Q 2 2 0 0 7 |
Q 2 2 0 0 6 |
t h g ro w |
|
| Op ( ) t in in E B I T er a g co m e |
3 9 1 |
3 7 2 |
% 5 |
|
| Tr fo ion in fro d ive i ing t t tu tru tu + + an s rm a g a m s re re s c r |
0 | ( 3 ) 5 |
||
| Op in in ( E B I T ) be fo im i t -t te er a g co m e re o ne e- m s |
3 9 1 |
3 3 7 |
1 6 % |
|
| Ne t in co m e |
1 7 9 |
1 2 9 |
3 8 % |
|
| Lo fro d ive t i tu tru tu ing tra fo t ion ts + ss m s re re s c r ns rm a co s , |
0 | 8 | ||
| Ne t in be fo -t im i te co m e re o ne e- m s |
1 7 9 |
1 3 7 |
3 0 % |
| P f i & L A t t r o o s s c c o u n |
Q 2 2 0 0 6 |
On t im i te e- e m s |
Q 2 2 0 0 6 lu d in im i t te ex c g on e- e m s |
|---|---|---|---|
| Ne t r ev en ue |
2, 1 6 5 |
2, 1 6 5 |
|
| Op ( ) t ing inc E B I T er a om e |
3 7 2 |
( ) 3 5 |
3 3 7 |
| E B I T- in ( % ) m ar g |
1 2 7. |
1 5. 5 |
|
| In te t e t re s xp en se ne , |
( 1 0 0 ) |
( 0 ) |
( 1 0 0 ) |
| Inc be fo inc tax om e re om e es |
2 7 2 |
2 3 7 |
|
| Ta x e xp en se |
( ) 1 3 8 |
4 3 |
( ) 9 5 |
| Ta ( % ) te x r a |
0. 6 5 |
4 0. 1 |
|
| M ino i ty in te t r re s |
( 5 ) |
( 5 ) |
|
| Ne t in co m e |
1 2 9 |
8 | 1 3 7 |
Fresenius Medical Care AG & Co. KGaAInvestor RelationsElse Kröner Str. 161352 Bad Homburg v.d.H.
Oliver MaierHead of Investor Relations & Corporate Communications Tel.: +49-(0)6172-609-2601 Fax.: +49-(0)6172-609-2301 Mob.: +49-(0)173-6522-712 Mail: [email protected]
North America:Terry L. Proveaux Tel.: +1-800-948-2538Fax.: +1-615-345-5605Mob.: +1-615-618-2987 bbMail: [email protected]
WKN 578 580ISIN DE0005785802SEDOL1 5129074 DE
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